Korea approves KORAIL-SR merger

Korea's antitrust regulator has approved the merger of state-run rail operators — Korea Railroad Corp. (KORAIL) and SR — clearing the way for the country's first integrated high-speed rail system and a broad overhaul to lower fares, expand capacity and improve passenger services. The Fair Trade Commission (FTC) said Sunday it found little risk that the transaction would substantially lessen competition in the high-speed rail passenger market. The approval allows KORAIL to acquire SR's business and a controlling stake previously held by the government, with the integration scheduled to be completed in September. The decision ends a decade-long dual-operator structure under which KORAIL operated KTX services while SR ran the lower-fare SRT network. The antitrust watchdog conducted a full assessment for the merger, citing the high-speed rail sector's importance to the national economy and consumers. The regulator concluded that competition concerns would remain limited because fares, service schedules and operational plans are already subject to extensive government oversight. Any fare ad